GRK has revealed its new strategy aiming to substantially increase the company’s turnover. GRK’s objective is to achieve a turnover of more than EUR 700 million by the end of 2025. In other words, the company is striving to increase its turnover by more than 80% compared with 2020.
GRK’s Board has approved the company’s new strategy for 2022–2025. The aim of the strategy is to build a uniform and more international company with a steadily increasing turnover and the most committed personnel in the field. The new strategy also emphasises corporate responsibility: GRK is aiming to become a forerunner in sustainable infrastructure construction and make the company’s own operations carbon-neutral by 2030.
“Our growth target is ambitious but we already have strong experience in profitable business operations. Over the past ten years, GRK has grown viably from almost nothing to a company with a turnover of EUR 400 million. Now, we are boosting our business and growing both organically and through acquisitions. However, we do not want our business to grow at the expense of profitability. Our objective is to become the most profitable company in the field by the end of 2025,” explains Juha Toimela, CEO of GRK Infra Oy.
The growth target applies to all the business operations of the GRK Group: civil engineering and road construction , rail construction, paving and environmental services in Finland, Sweden, and Estonia. The company is striving to boost its turnover by EUR 300 million through organic growth and acquisitions. Environmental services have great potential for growth as well.
“90% of the Group’s turnover comes from public sector operators, such as public agencies and municipalities. Our public sector clients make our business more stable and predictable. A historically stable market is expected to keep growing. At the same time, urbanisation, infrastructure repair debt , and investments are increasing the demand for our services,” says Toimela.
GRK is one of the leading infrastructure sector operators in Finland, and the company will increasingly invest in its operations in Sweden and Estonia during the next strategic period. Rail construction is one of the fastest growing sectors on which GRK will be focusing on over the coming strategic period.
“We are growing our business by focusing on railway network modernisation, superstructure projects and railway network maintenance. During the strategic period, our net sales is expected to increase especially in Sweden, because the country is investing heavily in rail traffic,” says Toimela.
GRK has plenty of experience in challenging infrastructure projects, which it has completed successfully ahead of schedule. Successful results have enabled GRK to maintain a high customer satisfaction level.
“We have accumulated a wealth of experience in demanding infrastructure projects, and we have a clear vision of how to manage projects. Our operations are internationally domestic: we can combine railway, bridge and route construction projects in Finland, Sweden and Estonia,” says Toimela.
Financial targets updated along with the new strategy
GRK measures the success of its strategy by monitoring the Group’s financial targets, which the company aims to achieve by the end of 2025:
• Net sales: over EUR 700m
• Operating profit: over 7%
• Share of recurring revenue : 12% of net sales
• Return on equity: over 25%
Further information:
Juha Toimela, CEO of GRK Infra Oy, +358 40 594 5473, juha.toimela@grk.fi